As Baby Boomers Streamline and Simplify, Compact UtilityVehicles
and Small Premium Home Sales Skyrocket

In the key baby boomer segment, ages 55 to 64, retail registrations of
the Ford Escape are up 81 percent since 2009 – higher than overall
industry growth

Small utility vehicles are most popular with buyers in this age group;
more than 46 percent of premium Ford Escape Titanium buyers are 56 or
older, indicating trendsetting boomers are opting for high-series
models loaded with technology and amenities

Baby boomers who purchase homes from Del Webb, which caters to the
55-plus market, prefer more efficient, one-story homes; premium
options these buyers specify add about 20 percent to the price of the
home

In the key baby boomer segment, ages 55 to 64, retail registrations of the Ford Escape are up 81 percent since 2009 - higher than overall industry growth. (Graphic: Business Wire)

DEARBORN, Mich.--(BUSINESS WIRE)--The baby boomer preference for everything bigger over the last 35 years
is shrinking, but this generation’s desire for comfort and amenities is
still very much at the forefront in the choices they make as consumers.

“Those baby boomers who worked hard for and embraced the affluent
lifestyle of the 1970s through the middle of the last decade – owning
large homes and spacious vehicles – have reached a turning point,” says
Sheryl Connelly, global consumer trends and futurist for Ford. “This
generation is now trending toward a simpler way of living, one that
doesn’t eliminate the lavish comforts they’ve come to enjoy.

“The boomer population has always set the trends,” Connelly adds, “and
now they’ve set a course for a more streamlined life that doesn’t
sacrifice style and comfort.”

Industry data supplied by Ford Motor Company and Del Webb, part of the
multi-brand homebuilder PulteGroup, show that boomers who comprised the
growing market for large homes and made minivans and big SUVs vogue are
now shifting to still lavish, but smaller homes and utility vehicles.

As the oldest of this generation – those born between 1946 and 1964 –
marked their 60th birthdays in 2006, the population was
estimated at about 78.2 million. Industry data suggest the baby boomer
instinct for knowing what is chic continues to influence popular
lifestyle choices.

The trend in homes increasing in size was a constant from the 1950s on,
with average home sizes going from 860 square feet in 1960 to 2,505
square feet in 2012.

While baby boomers helped fuel that trend, evidence shows they are now
breaking away, seeking cozier homes with top-of-the-line amenities and
features, according to Del Webb, which found 28 percent of people
between the ages of 55 and 59 prefer to downsize with their next home
purchase.

Homes built by Del Webb, the pioneer and largest builder of 55-plus
communities, average approximately 2,200 square feet with plenty of
demand for additional living space, such as lofts and sunrooms. These
premium-style homes typically include two bedrooms and two bathrooms, a
den and a 2.5-car garage.

Data from Ford show boomers are making the same decision with regard to
what they put in their garage, moving away from the SUV and minivan
segments they dominated in the 1980s and 1990s to smaller, car-based
utility vehicles that come with premium packages and styling.

Baby boomers who purchase a Del Webb home are typically downsizing to a
single-story, ranch-style house.

The average price of a Del Webb home in 2013 was $302,000, with
buyer-selected options and upgrades representing approximately 20
percent of that price.

“Baby boomers are the housing market’s fastest-growing category,” says
Steve Burch, vice president of strategic marketing for Del Webb. “After
talking with Ford and digging into the data, we realize baby boomers are
driving two of the largest, most important purchases an individual can
make in a lifetime – a vehicle and a home.

“Boomers may be downsizing,” Burch adds, “but they have worked for a
long time, and they don’t want to compromise on high-end features.”

Some baby boomers looking for premium home sites purchase lots with golf
course or water views. For those wishing to add premium features inside
the home, the top five options include granite countertops, hardwood
floors, upgraded kitchen appliances, sunrooms and fireplaces.

Baby boomers and small utility vehicles

The kind of premium content baby boomers are specifying as they downsize
can also be found in the type of vehicle they now want to drive –
smaller utility vehicles loaded with amenities and features.

An uptick in small utility vehicle sales started in 2004 and has
continued a steady climb, according to retail sales data from Polk,
which was recently acquired by IHS. Correlating with the number of
adults considered to be baby boomers is the number of smaller, car-based
utility vehicles being sold to that demographic.

“Trendy baby boomers want to downsize their homes and their vehicles,
but they’re not willing to give up premium content in either case,” says
Amy Marentic, marketing manager for the global car and crossover group,
Ford Motor Company. “Personally, I felt the need to downsize. My
children are in college and I have no need for the larger utility any
more, but I still want to feel like I’m driving something special.”

The largest demographic buying small utility vehicles such as the Ford
Escape are people between the ages of 55 and 64, according to Polk. The
second-largest demographic are those between 45 and 54. The number of
65- to 74-year-olds purchasing small utility vehicles has more than
doubled since 2009 – growing at more than twice the rate of new retail
vehicle sales overall in the demographic, according to the same data.

“While Escape is a compact utility built for everyone and we’re seeing
strong sales across the board, sales are really being driven by these
active adults in the 55- to 64-year-old range,” says Erich Merkle, U.S.
sales analyst for Ford. “It’s no secret baby boomers are playing a large
role in the compact utility vehicle segment, and will continue to do so
well into the foreseeable future.”

Ford Escape is outpacing the industry in key population segments,
including every age demographic above 55 years old.

“Some of the strongest growth we’re seeing for Ford Escape is in those
places where boomers are buying homes – the Carolinas, Florida and the
Southwest,” says Merkle.

About Ford Motor Company

Ford
Motor Company, a global automotive industry leader based in
Dearborn, Mich., manufactures or distributes automobiles across six
continents. With about 181,000 employees and 65 plants worldwide, the
company’s automotive brands include Ford and Lincoln. The company
provides financial services through Ford Motor Credit Company. For more
information regarding Ford and its products worldwide, please visit corporate.ford.com.

About Del Webb

Del Webb is a national brand of PulteGroup, Inc. (NYSE: PHM). Del
Webb is the pioneer in active adult communities and America’s leading
builder of new homes targeted to pre-retirement and retiring boomers.
Del Webb builds consumer inspired homes and communities for active
adults ages 55+ who want to continue to explore, grow and learn,
socially, physically and intellectually as they look forward to
retirement. For more information on Del Webb, visit www.delwebb.com.